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Mortgage Modification: Understand Your Options

Introducing The Home Affordable Modification Program

Are you a homeowner facing a potential foreclosure? If you’ve considered mortgage modification, you might be getting confused or overwhelmed with the options – not to worry, we can help shed some light! First, let me introduce you to the Home Affordable Modification Program, or HAMP, a federal program for people underwater on their mortgage.

The Home Affordable Modification Program (HAMP) is a federal mortgage modification program targeting homeowners at risk of foreclosure.

First announced in March 2009 as part of the broad Making Home Affordable program, HAMP is designed to help homeowners who are employed, but who are struggling to make their mortgage payments due to a financial hardship.

HAMP was originally meant to help up to four million homeowners permanently modify their mortgages. But since the program began, only 1.4 million permanent loan modifications have been made through HAMP, according to the latest data from HUD.

Do I qualify for HAMP?

HAMP aims to modify the terms of a distressed homeowner’s mortgage in order to make their monthly payments more affordable. It does so by lowering mortgage rates, lengthening terms and offering principal forbearance. According to recent data, HAMP lowers mortgage payments by a median of $490 per month.

Here’s the full list of HAMP requirements:

  • You must be struggling to make mortgage payments due to a financial hardship
  • You must be delinquent or in danger of falling behind on your mortgage
  • You must use the property as your primary residence or as a one-to-four unit rental property
  • You must owe no more than $729,750
  • You must have taken out your mortgage before January 1, 2009
  • You must not have been convicted of a crime within the last 10 years in connection with a mortgage or real estate transaction
  • You must have a total housing expense — including principal, interest, property taxes, insurance, and homeowners’ association dues — that exceeds 31 percent of your gross income


Can’t Pay Your Mortgage? There Are Options!

Sometimes all you need is someone to break down your options in the clearest, simplest way possible. Look below to find an explanation of the 6 top options for people facing foreclosure on their mortgage, including loan modification. you found yourself in a position where you are no longer able to make the payment on your mortgage of your home? If that is you, we understand that this may be a very stressful time for you, and that you may be wondering what options are currently available to you as a homeowner in a financially distressed situation.

Right now, we understand that you may be trying to find ways to avoid needing to sell your house in California, fast, so that you can stain your primary residence as long as possible. Fortunately, we have researched thoroughly and found several foreclosure prevention options that, if you qualified for, my help you stop or even prevent the otherwise imminent foreclosure of your property.

Below are 6 options that we think you should look into, that may help to alleviate the burden of your current mortgage payment:

Loan Repayment Plan

If you have only missed a small number of payments, then a loan repayment plan might be the best option for you. In a loan repayment plan you entering into an agreement between you and your lender where your lender adds any back due interest onto the long end your lender gives you a fixed amount of time to repay the loan. If you have missed a very large number of mortgage payments this may not be the best option for you.

Loan Reinstatement

If you feel that your current financial situation is only temporary and not long-term, then a loan reinstatement agreement between you and your lender may be a better option than a loan repayment plan. When your lender agrees to loan reinstatement, they will they will require you to pay any late fees the entire past due amount and any penalties that may have accrued.


Have you found yourself underwater on your mortgage? Have you considered mortgage modification to help?

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